CCSD - Preliminary FY2012 Budget Forecast

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CCSD - Preliminary FY2012 Budget Forecast

  1. 1. Preliminary FY 2012 Budget Forecast February 9, 2011 Presentation to Principals1
  2. 2. What are we talking about? Shortfall in state/local funding $250 to $275 million or at least $870 per student Loss of Federal Funds 939 positions ARRA (Title I, IDEA), EduJobs2
  3. 3. Why is this happening? Shortfall It’s called a Structural Deficit5
  4. 4. What has already been cut? Since 2007 • 20% of central office staff • Block schedule & AVID funding • School staffing – 3% • Class size increase: Grades 1-3 (by 2) • Administrative staffing • Textbook/supply budgets A total of $375 million has been cut and 1,734 positions eliminated3
  5. 5. What about the Capital Funds? State is proposing to take a total of $300 million from CCSD’s Debt Service Reserve4
  6. 6. What would that mean? • The debt service property tax rate ($0.5534) will need to increase to cover future debt service costs • And/or CCSD will need to push debt service costs out into the long-term future (which will cost more in interest payments) • $150 million per year of the state’s ‘guaranteed’ funding is coming from CCSD’s capital funds • This is a one-time, stop-gap measure that will leave a big financial ‘hole” to fill in the next biennium • Goes against promises made to voters in 1998 State law would need to be changed to allow this4
  7. 7. Why are we short $250-$275 million? State Funds - $196 million Debt Service Funds + $150 million Loss of room tax - $35 million Property tax decrease - $48 million Fund balance used up - $62 million Employee Contractual provisions - $68 million (step, increments, PERS) NOTE: This assumes no new revenue6 sources are identified
  8. 8. How bad is it? $ 250-275 million = 14 more students per classor 33 less days in the year or 16% cut in pay/benefitsor 95% of central office A reduction of as many as 3,800 positions7
  9. 9. How can you help? Tell us… What you have had to do at your school to deal with cuts made already? What would the impact be if your staffing was reduced again?7
  10. 10. When will we know? Tentative budget must be adopted in April & the final budget in May Reduction-in-force process must begin in April State funding will likely not be known until June Negotiated agreements roll forward until bargained8
  11. 11. Our Strategy ? Plan for the Work for the Worst Best Participate as a Team8

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